Future of Healthcare Industry in Asia Pacific in 2020
22
Jun

Future of Healthcare Industry in Asia Pacific in 2020

Ram Tumuluri “In response to the ballooning demand for quality and cost-effective care, Asia is seeing dynamic growth in innovation in the healthcare industry. According to the World Economic Forum, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam’s total healthcare spending in 2017 was estimated at $420 billion and is expected to increase by 70% over the next two decades.”

In this article:

Shifts in universal health coverage 

Payer-provider relationships will grow stronger

Population Health 

Investors will be looking beyond hospitals 

Shifts in universal health coverage 

Governments will need to concentrate on sustainability as they search for ways to increase financial support and keep track of how their main objectives can be implemented. We believe digital innovations in emerging Asia, as they were in 2019, would be one way to fix healthcare shortfalls. It is a long journey, though, and progress will be slow. This year we are expecting small steps rather than huge shifts.

Payer-provider relationships will grow stronger

Trends in the healthcare industry such as growth in data analytics and highly deductible health plans are causing the relationships between payers and providers to evolve. This will pave the groundwork for setting fair, standard rates for private insurers, as public health programs transition away from mere fee-for – service payments and into packages, case rates and the creation of reimbursement benchmarks for common procedures.

Population Health 

We can expect greater interest in more accuracy in public health and in the development of programs in the field of community health. The unit of analysis and intervention will switch from encounters and volume to populations and individuals by leveraging aggregated data and analytics. Singapore will likely be a destination for such innovation as it aims to broaden targeted health services – as part of its digital enabling initiatives for SmartNation. 

Investors will be looking beyond hospitals 

Hospitals are likely to continue to be seen as flagships of investment in health care. This is due to numerous factors, including: high margins, a competitive market, reasonable competition, and consolidation that produce quick wins. However, there may be fewer big deals available for hospital investment in the region following a high-profile year. Investors will be progressively willing to purchase new asset categories, notably out-of-hospital care for specialties such as in vitro fertilization (IVF), optical care and dental care. 

Business-to-business solution providers are likely to offer investors an opportunity to participate in important healthcare sectors where multinational corporations have already captured the incumbent insurers and pharmaceutical companies.